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Adidas had a difficult Q3

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Miguel A. Rodriguez
Miguel A. Rodriguez
11 November 2020
Adidas is cautious about the future given the new wave of COVID-19 infections

The sportswear company Adidas posted Q3 2020 figures, which showed the pandemic's effects on the business.

In Q3, Adidas reported a 3% fall in sales to €5.96 billion. Analysts were expecting the decrease to reach €5.91 billion. Its operating profit dropped 12% to €794 million. The decline was ahead of the €723 million forecasted.

Despite the 4% increase in sales reported in Europe, those in the USA fell 1%. In China, the drop was even bigger - 5%. On the other hand, e-commerce sales surged 51%.

According to Adidas, the decreases are due to the new wave of COVID-19, which forced the company to close stores.

For the future, the company expects the sales to decline as much as they did in Q3, despite the return to growth projected in China and the strong demand for products designed by Beyoncé. The operating profit is seen below the consensus at €100 million with a high of €200 million.

Following the report, Adidas' stock price fell more than 5%.

Sources: reuters.com, finance.yahoo.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.